The changed world of work means in a tight labour market retailers need to engage or re-engage with their people before someone else does, believes retail search specialist Clarity’s managing partner Fran Minogue

Among the many negatives – like losing two years of our lives, and many people losing so much more – there is no doubt that, from a business perspective, there were a number of positives during the Covid period. 

Trust between employers and employees grew by 70% as a more human form of leadership emerged. But we also saw a high degree of burnout, as the pressure people were under was unsustainable. One chief executive memorably said: “I’m not working from home, I’m sleeping in the office.”

We have all heard of – and probably experienced – ‘the great resignation’. In December 2021, according to PwC, 68% of employees claimed to be considering a career move. 

That had come down to 57% by February but it’s still over half the workforce, which – if anywhere near accurate – will cause huge disruption and a loss of corporate memory. 

And according to the Office for National Statistics, three in five of the over-50s have left work earlier than planned since the pandemic started.

There is a crisis in recruitment at all levels, which will be exacerbated among the brightest and best by pent-up demand for gap years and even going back to university to take an MBA.

“Hybrid working is here to stay, but what are the long-term implications?”

Hybrid working is here to stay, but what are the long-term implications? Will it drive resentment between those who have no option but to work five days in stores and DCs, and support centre colleagues who can choose to work from home two or three days a week? 

We’re already seeing more men back in the office than women, to whom the majority of childcare still falls. What impact will that have on promotion prospects and diversity over time?

How do you attract and retain the best talent?

Never was corporate purpose more important. What do you stand for? How do you create alignment around shared values? Now more than ever people need to believe they’re “doing something important” with their life.

Your environmental, social and governance agenda and diversity and inclusion policy will be scrutinised and challenged by a workforce that now feels more engaged, involved and entitled. This is a stakeholder group that has found its voice and is not afraid to use it if it finds the company lacking or not sharing its priorities – Black Lives Matter showed that.

Wages and salaries are rising at the fastest rate since the 1980s but money is still a hygiene factor – as soon as someone receives a pay rise, they think they were worth it anyway. Recognition is the real motivator. Valuing people for their personal contribution and treating them as individuals will create stickiness and loyalty.

Work is a verb, not a noun

We know from the past two years that we can trust people to work wherever they are, whether at the office, store or home. In fact, the combination might make them more productive and creative.

What is the office for? When colleagues do come in, we have to make it worthwhile to spend hours a day and thousands of pounds a year on the commute. If we just expect them to sit in front of a screen for eight hours, they will vote with their feet.  

Everyone has heard the buzzwords – collaboration, innovation, and personal growth. But how can these be put into practice? Can you reconfigure your space to truly create hubs where teams can come together to learn and share ideas and best practice? Will investment in technology and AI free up time for more added value work? Can you reskill and upskill the workforce?

“The new employee value proposition is about flexibility, mental wellbeing, development opportunities and non-cash rewards”

It’s time for a new working contract – a holistic approach to the whole person, not the ‘employee’. Re-engage with your people before someone else does in this tight labour market.

The new employee value proposition is about flexibility, mental wellbeing, development opportunities and non-cash rewards.

The future of work is more fluid and inclusive with a healthier relationship between company and individual. Consider exploring reverse mentoring to stay connected to Gen Z’s values and what they are looking for beyond the pay packet.

Get it right and you can have the best of both worlds – higher productivity at home and better collaboration in the office.